Shell focuses on Basra gas after its Majoon exit

Oil major Royal Dutch Shell announced that it would focus its efforts on the development and growth of the Basra Gas Company in Iraq after handing over operations of the Majnoon oil venture back to the Iraqi government. Shell Iraq has begun preparations to finalize the exit of Shell from Majnoon – one of the largest fields in the country. In May, earlier this year, the ministry of oil in Iraq applied the performance penalty and remuneration factor on the Shell operated venture – the Majnoon oil field – which had a significant impact on its commerciality. This led to Shell deciding that it was in the best interest of all parties for it to hand over operations of the Majnoon venture to the Iraqi government.

Total launches 4 EPC tenders for Iran’s South Pars Phase 11

Total-led consortium has issued invitation to tender four EPC packages for offshore production facilities for South Pars Phase 11 in Iran. The 4 packages for this project are: Package 1 (Jackets), Package 2 (Topsides), Package 3 (Subsea pipelines), Package 4 (Transport & Installation). Bids for three of the EPC packages are expected to be submitted by 27 September, with the proposal for the fourth given a 7 October deadline. While Total and its Chinese & Iranian partners (CNPC and Petropars respectively) won this contract in July for c.USD 2bn, it is eventually expected to expand to c.USD 5bn. The consortium are looking to develop 2 wellhead platforms, 1 bridge, 2 flare arms and pipelines.

Shelf Drilling has announced that it has been awarded a 2 year contract by Dubai Petroleum for both of its jack-up rigs – Shelf Drilling Tenacious (previously called the West Triton) and the Shelf Drilling Mentor (previously called the West Mischief). Both rigs were acquired along with two other jack-ups from Seadrill for a total of USD 225mn. Planned startup for operations is January 2018.

DEWA develops ties with Chinese Public & Private sectors

DEWA announced that a delegation headed by its MD & CEO, HE Saeed Mohammed Al Tayer, visited the People's Republic of China in order to build closer ties with Chinese renewable & clean energy, smart services, smart grid companies and the Chinese Government. The group visited Hanergy Holding Group's (one of the largest international companies in alternative and renewable energy) headquarters and Exhibition centres in Beijing. Additionally, the group visited Huawei's R&D centre; the visit is part of a JV with Huawei, "which includes R&D projects to develop smart network infrastructures and various mechanisms and technologies, such as smart meters for electricity and water services, energy demand management, and self-recovery mechanisms from errors and disasters," stated Al Tayer. “This visit aims to exchange views and experiences, enhance and activate the latest developments and best practices, review global performance indicators and benchmark high-level comparisons in the renewable and clean energy and smart technologies and services sectors," he added.

DNO takes on 3rd operating license in Kurdistan

Norwegian oil and gas operator, DNO, announced an agreement to join ExxonMobil for the Baeshiqa license in the Kurdistan region of Iraq. While DNO and ExxonMobil will both hold a 32% stake each, Turkish Energy Company (TEC) will hold a 16% stake and the Kurdistan Regional Government will hold the remaining 20%. After government approval, DNO is expected to drill an exploration well in the first half of 2018 with a second exploration well to follow on a separate structure. Currently, DNO operates two other licenses in Kurdistan - one contains the Tawke and Peshkabir fields which together produce over 110,000 barrels of oil per day, while the other contains the Benenan and Bastora heavy oil fields which are going through further appraisal and development.

Saudi Aramco to add 1.9mn barrels of crude oil to its Japan storage

As Saudi Aramco has received a fully loaded VLCC at a crude storage terminal at Okinawa, Japan, it is expected to add c.1.9mn barrels (300,000 kiloliters) of crude to the current c.6.3mn barrels storage that it holds in Japan. Under the latest agreement between Saudi Aramco and state-owned Japan Oil, Gas and Metals National Corporation (JOGMEC), Saudi Aramco can use three more 100,000 kiloliter storage tanks at JOGMEC's terminal in Okinawa for commercial use. In exchange for providing storage capacity free of charge, according to the agreement, Japan will receive priority for crude supplies during an emergency.

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